Here's a great post by Grinresh I found on the official forums:
http://us.battle.net/wow/en/forum/to...271?page=7#134
Unfortunetely it basically confirms my worries. While each race will have an amazing "base" model, the different faces will not be able to be transferred easily, because of the complexity of the model. The eye, mouth, eyebrow, nose and other facial features will be determined by the model itself, allowing for great facial expressions but
drastically limiting the possibility of customizing the textures.
All they can really do is add scars, warpaint, markings, change the eye color. Basically the same thing they did with the Pandaren.
There's a strong possibility (unless they alter the face
model for each facial option, and that seems like a LOT of work) that we will have a war of clones with nothing but little scars and wrinkles distinguishing them from one another.
Lack of customization seems to be the price to pay for ONE universally good look for each race/gender.
Say goodbye to your angry looking gnome/scary undead because after the update they will all more or less share the same basic look.